GATP - Allocation with Availability Check

[Former Member]

Friends,

Need help setting up the below scenario in GATP :

Product Allocation for Product A is 100 per day and allocated only in single bucket (rest of the buckets zero qty). Order comes in for 150 qty. If I check allocation first then only 100 will be confirmed as there are no more allocations i future/past buckets. So, the rest of the qty should be confirmed after 10 days (assuming that the RLT is 10 days).

So, to set up this scenario in check instructions, I would let allocation be first step and product availability next step and in check control I have confirmation at end of checking horizon. But I am not getting the expected result. Please help me!!!!

Thanks

Sapper

[Former Member]

DB49,

Let me put my requirement this way :

Because of demand exceeding supply, I have allocations in place. Let's say these allocations are generated (based on business rules viz. priorities etc etc etc....) every day by the SNP run and extracted out to load into a PAG. So this is a constrained supply situation and SNP run should be taking care of allocating the right number out of your on-hand and/or open PO/STOs.

Now comes the order, 150 qty exceeds the allocation 100 for that customer(let's say) - typically remaining 50 will go to a backorder. next day SNP run will try to fulfill the remaining 50 based on RLT etc.

But customer wants to see the confirmation when he places the sales order (he will or will not place order if he cannot get it on the required date) . i.e. the delivery proposal should look like this : 100 is confirmed right away out of the on-hand and the rest 50 will be confirmed some time later based on RLT.

Is this a doable thing with GATP???

I am sure Scheduling agreements are out of question for one reason that the allocation numbers are generated daily/weekly based on supply situation.

Thanks

Sapper

[Former Member]

Hi Sapper,

Checking Horizon is only supported with Product Availability. So what you are trying to achieve would not work with a straight forward configuration as far as my knowledge.

This can be done using RBA combined with location determiniation activity.

Rule1 Setup RBA to trigger check instructions 1 with Prod. Allocation and Product Availability.

Rule2 Trigger check instructions 2 with checking horizon only with Product availability.

Problem with this solution is any inventory(if available) you have available for that particular material would end up being pegged with the sales order created resulting in not confirming new customer orders.(Might require BOP to counter this)

Regards,

Harish

[Former Member]

Sapper,

Allocation is effective in constraining demand.

Here, you do not want to constrain demand. You are willing to let the customer have anything he wants, regardless of your supply situation (eg at lead time you are willing to confirm 'billions of widgets' on a sales order). Allocation is a poor tool for this purpose.

Harish has suggested a hybrid solution using RBA. It is not a solution that I would use (for the exact reasons that he states) but perhaps it will satisfy your requirements.

Rgds,

DB49

[Former Member]

Friends,

Any more thoughts on this.....

I am sure most of you have faced this issue (requirement)

Thanks

Sapper

[Former Member]

DB49,

I understand what you are saying. But GATP being an order confirmation system, expectation would be that the outcome of the check is some promise date. And ofcourse this is the requirement for me. I think there should be some workaround to achieve this and moreover I think this may be a generic requirement.

Thanks

Sapper

Edited by: Sap_per on Jul 19, 2009 10:01 PM

Edited by: Sap_per on Jul 19, 2009 10:04 PM

[Former Member]

Sapper,

Many companies set up their businesses such that the original order entry results in an unconfirmed order. Allocation IN PARTICULAR is designed to exclude certain customers from receiving any confirmation at all.

So, let us look at your requirement. It seems that you have an allocation, based on some business rules (customers? region? market segment?). Allocation is designed for situations where marketplace demand exceeds supply, and you wish to limit sales order confirmation to some predefined quantities. The normal reason is to stop certain customers from buying all of your product, but instead divide your output up such that a previously defined grouping of customers can each get their fair share.

Now you say, "if the customer has an allocation and I have stock, I want to confirm against the stock. If the customer does not have allocation, then I want the order to confirm to some fixed date in the future." Please confirm if this is your requirement.

Allocation is not designed for this purpose. I have low confidence that it can be tortured into meeting this requirement. if you are unwilling to create an allocation for this customer at lead time to cover his excess requirements.

I don't really know all of your requirements, but I believe one solution that may work is to use SD Scheduling agreements. (you don't need APO for this, BTW) . You enter a scheduling agreement according to the amount you wish to build for this customer. You build product according to the customer's SA, and ship accordingly. If he attempts to overbuy, then his order is treated the same way you treat any other order that has inadequate supply, typically confirms to lead time.

Rgds,

DB49

[Former Member]

DB49

Yes, I am getting this result but I expect that 100 should be confirmed out of the allocation quantity but I want the rest 50 to be confirmed outside of the checking horizon. This is not happening. Any thoughts appreaciated.

Thanks

Sapper

[Former Member]

Sapper,

Put the remaining 50pc into the customer's allocation bucket that exists consistant with the time frame you want him to have the parts. Or, don't use allocation.

Allocation is a time-phased limit on the product that can be confirmed. If you don't enter an allocation for the customer, he won't get any product.

Placing Allocation first means that the system will check to see if the customer meets all your allocation requirements you have entered. Placing product check next means, 'I have permission to confirm based on allocation, now, do I have product that I can give to him".

Rgds,

DB49

[Former Member]

Sapper,

If you set up allocation for 100 pc, you will only get 100pc confirmed. The balance will normally remain unconfirmed.

You say you are not getting the expected results. What are you getting?

Rgds,

DB49